Smart Financial Moves to Make in 2019

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Finance is an important part of life, so getting good at managing them is essential. It isn’t always the easiest thing to learn especially if you have adopted years of bad finance-related habits. Nevertheless, it’s never too late to change and turn things around. No matter where you presently are in life, there are some fundamentals that could set you on the right path financially. If you’re able to implement and be consistent about such fundamentals, you should be able to get further than you’d imagine. Here are some smart financial moves that you should think about making in 2019.

1.) Maintain Good Credit

Going into 2019, if you have good credit, try and keep it that way. Avoid going back into a financial ditch as it can set you back and affect other areas of your life negatively too. In order to maintain good credit, you should make sure you’re up-to-date with your debts and have an exact idea of how much you owe. Write out a plan to clear these debts using your budget to help you do so in the most organized way possible.

In addition to this, it’s in your best interest to stay below your credit limit and avoid maxing out your cards. Try and stick to spending 30% or less of your credit limit as well as paying back as early as possible. If you do fall behind due to unforeseen circumstances, make sure you communicate with your creditors to avoid negative repercussions.

2.) Have Financial Goals

As well as maintaining good credit, financial goals are crucial in the grand scheme of things as well. If you don’t set any, then you have nothing pushing you as well as no focus. Write down a few financial goals that make you feel motivated and inspired. To meet your financial goals, keeping a close eye on your money and knowing how it’s being spent is essential too.

3.) Get Low-Interest Loans

Not everyone decides to take out a loan, but if you do, be wise about it. Go for ones with low interest and be sure it’s something you really need. Before making any final decisions, shop around so that you get one with the best rates. If it’s your first loan, consider getting an installment loan as it’s likely the most practical. If your next question is ‘what is an installment loan?’, it’sessentially one that lets you repay on a monthly basis. It may also help if you have an emergency fund on standby just in case your income stops and you’re unable to continue monthly payments.

4.) Save More

In the new year, if you don’t already have savings, set a realistic target that enables you to do so. This should give you more of an incentive to save and avoid impulse spending. To set saving goals, start with doing research on each goal so you know how much you need to save. If, for instance, you want to buy anew computer, then see how much it costs. You can then set a timeline and begin putting aside money every month until you reach that goal. In the same respect, if you want to go to Japan, see how much the trip will cost and then factor it into your savings.

5.) Consider Investments

Investing is another smart move that you could make in 2018. Securing your future is so important, so explore ways that you can do that. One would be to open your own private pensions account where you contribute as much as you want every month. This is a way to make sure that you’re able to retire comfortably.

Aside from this, you may also want to think about investments in the stock market as mentioned above. Index funds are typically a good option as you can buy parts of some of the biggest companies in the world.

If you happen to be a first-time investor, understand your risk tolerance before putting your money anywhere. By doing this, you can avoid high-risk investments if you can’t stomach them. Another tip for first-time investors is to diversify your portfolio. Don’t put all of your eggs in a single basket so that if some of your investments go bad, you don’t lose everything.

When you have the right skills to manage your finances, you increase your chances of achieving financial security. Every new year is a chance to reboot your finances and make better choices that will benefit you long term.

5.) Consider Investments…….. This item should be pumped to the top. Cerritos residents purchased in the city because of the housing stock/ master planned community. Unfortunately, city has more then 35% Investments rentals, and landlords are not maintaining their properties, hence, our properties are not going up in values, compared to other cities. Tenants are only renting home, landlords need to keep their investments to INDUSTRY STANDARDS. Yes, we are going up in monetary values, BUT not at the escalating rate, compared to many other cities around the state. Annual budget is spending over $1M per year in community safety… Read more »